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Home / Business / Tencent-supported live streaming company DouYu announces $ 500 million

Tencent-supported live streaming company DouYu announces $ 500 million



HONG KONG (April 23): China's largest live streaming platform, DouYu International Holdings Limited, which is backed by social media and gaming giant Tencent Holdings Ltd, has completed a US IPO up to $ 500 million requested. 19659002] DouYu, which focuses primarily on live streaming games, is one of several Chinese startups in the growing live streaming market in China, along with US-listed rivals Huya Inc. and Huajiao.

The rapid The growth of the live streaming sector has led to China's tech heavyweights – Tencent, Alibaba Group Holding and Baidu Inc. – opening their wallets to support a number of companies in the hope that It can strengthen existing e-commerce, social networking and gambling services. 1

9659002] DouYu has exclusive streaming rights to 29 major tournaments in China, including League of Legends, PlayerUnknowns Battlegrounds and DOTA2. This can be seen in the prospectus draft, which was uploaded overnight to the US Securities and Exchange Commission website on Monday.

DouYu was the largest game streaming platform on average of total monthly active users (MAUs) on both mobile devices and PCs in the fourth quarter of 2018, according to the prospectus. The company had 159.2 million MAUs in the first quarter of 2019, representing a year-on-year increase of 25.7 percent.

For the IPO, a wildcard sum of US $ 500 million has been set, which will be used to calculate registration fees. The final size of the IPO could be different, although the sources previously reported that DouYu wanted to raise around $ 500 million.

DouYu's IPO this year could be one of the largest of any Chinese company in the US, along with that of Starbucks challenger Luckin Coffee, who also filed overnight.

Chinese companies have so far raised $ 271 million through US IPOs this year, with the largest deal being that of Ruhnn Holding Limited, which contributed $ 125 million, as refining data show.

LOSS MAKING

19659002] China is the world's largest game streaming market, with approximately 4.9 times monthly active users of the US market in 2018, according to the prospectus.

DouYu's active users spent an average of 54 minutes a day on the Quarterly 2018 platform for the fourth month.

DouYu is still loss-making and reported a net loss of $ 127.4 million in 2018, compared to 91.33 Million in 2017. Revenues increased 94 percent last year to $ 531.5 million. [19659002] The company increased its sales and marketing costs – which increased by 73 percent in 2018 – and research and development expenses, which increased 55 percent.

Most of DouYu's revenue comes from live streaming through the sale of virtual gifts The prospectus accounted for 86.1 percent of sales, with the remainder coming from advertising and some revenue from game developers and publishers.

Bank of America Merrill Lynch, JPMorgan and Morgan Stanley are the DouYu's flotation draftsmen. 19659016]
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